Last week, mortgage rates gradually decreased and retreated back toward the 5% level as a result of economic reports that suggested inflation may have reached its peak.According to Freddie Mac, the 30-year fixed-rate mortgage averaged 5.13% in the week ending August 18, down from 5.22% the week before.Mortgage rates spiked throughout the first half of the year from the year’s low of 3.22% to a high of 5.81% in mid-June. However, since that time, they have been more erratic due to worries about the economy and the Federal Reserve’s goal to fight inflation.According to the Mortgage Bankers Association, mortgage application activity decreased last week compared to the week before, and overall applications have dropped to their lowest levels since 2000.
